[shalmanese]

What % of startups fail before they even get to the stage of being able to hire a founding engineer? You can either make the choice to be a founder and start before this selection filter or be a founding engineer and start after the selection filter.

Of course, the odds are not static and some people genuinely do have a better RAROC by being a founder but most people overestimate their founder abilities vs the odds and feel like they're not fairly compensated at 1%, which is fine, most people shouldn't be founding engineers either.

But there's a reason it's equilibrated around the 1% mark because early equity compensation is about risk, not effort.